WisdomTree has filed with the SEC to create two new funds that track the change of the American dollar against a basket of world currencies. The new funds will compete with PowerShares US DB Dollar ETF (UUP: Quote, Profile, Advanced Chart, News), which has attracted more than $3 billion from investors.

The WisdomTree Rising Dollar Fund, one of the new funds, will seek to provide performance equivalent to the change in the value of the US dollar against 15 other world currencies. The fund will invest in Treasury bonds, as well as money markets and currency contracts, to derive returns for its investors.

WisdomTree Commodity Currency Fund will seek out currency investments in countries with strong commodity producing industries. The fund is centered on the relative value of the currencies represented by the following countries: Australia, Brazil, Canada, Chile, Indonesia, Mexico, New Zealand, Norway, Russia and South Africa, according to the SEC filing.

Already a power-player in the U.S. ETF industry, iShares is seeking to expand its operations throughout South America. The expansion would allow iShares to expand its presence in foreign stock exchanges, while bringing ETFs back to the U.S. through ADRs.

Much of the expansion is riding on the success of iShares’ new Chilean ETF, which is set to launch this year. However, before even launching the first fund, iShares staked claim to the southern hemisphere, filing to create funds in Brazil, Columbia and Argentina, according to Bloomberg. While the new funds are in planning stage, Daniel Gamba of Barclays Global Investors has high hopes for new funds, saying, “Emerging markets are going to keep outperforming the developed world in the next two years.”

The expansion is well received by American investors seeking easier access to foreign markets. Thus far this year, emerging market ETFs have led the inflow charts, helped by a dreary outlook on the future of the U.S. economy.

iShares will soon expand its market of exchange-traded funds to Chile, creating local entities while simultaneously bringing a number of US-listed ETFs to the exchange. The products will be cross listed, similar to ADR listings on the New York Stock Exchange.

iShares is a leader in international exchange traded funds, bringing all the major markets into a giant spider web of listings. Recently, iShares listed a Peruvian ETF in Mexico after its successful launch in the United States. ETF holdings of both US and international funds grew to $7.9 billion in July from $2.6 billion in 2006, fueled by both iShares’ growth and a general underlying boom in the overall industry, according to Bloomberg.

The cross listed platform will help grow foreign interest in the United States stock markets, while bringing more interest to Latin America’s third largest stock market.

Capitalizing upon the current popularity of emerging ETFs, Emerging Global Advisors has launched its second exchange-traded fund of 2009. The new fund, named Emerging Global Shares Dow Jones Emerging Markets Titans Composite Index Fund (EEG: Quote, Profile, Advanced Chart, News), seeks to track the Dow Jones Titan Index, but with several amendments to the original index.

According to a press release, the fund is weighted by country as follows:

China Offshore: 20.43%
Brazil: 20.29%
India: 18.15%
Russia: 14.24%
Mexico: 10.07%
South Africa: 8.30%
Chile: 2.74%
Malaysia: 1.85%
Indonesia: 1.53%
Kuwait: 1.04%

The new ETF will invest in 100 of the top stocks of the Dow Jones Emerging Market Titan Index. To protect against bubble investments, the fund will ensure that no sector has more than 10% of the vested interest of the fund. The fund is just one of 10 sector-based ETFs Emerging Global Advisors plans to launch in the near future.

The Emerging Global Shares Dow Jones Emerging Markets Titans Composite Index Fund will trade on the NYSE Arca with an annual expense of .75%.

Emerging market exchange-traded funds will soon experience a dramatic shift in the countries they invest. As of this year, South Korea, a staple in most emerging market ETFs, will be upgraded to a developed nation status and no longer qualifies for investment from emerging market-only funds.

The Street reports that one particular fund, the iShares MSCI Emerging Markets ETF (EEM: Quote, Profile, Advanced Chart, News), will be radically changed by the upgrade and suggests that Thailand and Chile could make up the void. Chile is one of the few emerging market nations that has a trade surplus from its copper reserves. Thailand, a net exporter of clothing and other manufactured materials, is another solution for the South Korean void, but it lacks the stability of the Chilean government.

Whatever the result, emerging market ETFs across the board will see large changes in holdings and volatility in light of South Korea’s upgrade.